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MOSL: AUTOMOBILES | JAN-18 VOLUMES: 1. MARUTI SUZUKI; 2. TATA MOTORS; 3. Mahindra & Mahindra

Automobiles | Jan-18 VOLUMES: 1. MARUTI SUZUKI; 2. TATA MOTORS; 3. Mahindra & Mahindra; 4. Eicher Motors; 5. Ashok Leyland; 6. TVS Motor

 

Maruti Suzuki: Dispatches up 4.8% YoY to 151.4k units (in-line); Domestic sales grew 5% YoY, while exports rose 2.8% YoY 

• MSIL’s Jan-17 wholesales came in line at 151,351 units (+4.8% YoY, +16.4% MoM). YTDFY18 growth was at 13.1%, with a residual monthly run-rate of 157.3k units.
• Domestic volumes increased 5% YoY to 140.6k (est. of 139.9k), led by continued growth in the compact (+15.4% YoY) and UV (+26.8% YoY) segments.
• Growth in the compact segment was led by Baleno and new Dzire, while that in UVs was led by Brezza and new S-cross.
• Ciaz sales declined 22.5% YoY to 5.1k units (est. of 3.6k units).
• Export volumes were in line at 10.8k units (+2.8% YoY, flat MoM).
• The stock trades at 25.7x/20.2x FY19E/20E earnings. Maintain Buy.

Tata Motors: Volumes up 39.6% YoY to 64.7k units (above est. of 61.4k); CV sales grew 33.8% YoY to 44.4k units (in-line)

• Tata Motors’ Jan-18 sales volumes increased 39.6% YoY to 64.7k units (est. of 61.4k units).
• PV segment sales increased 54.2% YoY as the car segment volumes grew 26.2% YoY, while the UV segment registered volume growth of 177% YoY due to healthy demand of Nexon.
• Total CV volumes increased 33.8% YoY to 44.4k units (in-line), led by an increase in both LCV and HCV sales by 12.8% and 54.7%, respectively.
• The stock trades at 6.2x/5.8x FY19E/20E consol. EPS. Maintain Buy.